FranchiseVerdict
HAUTE IN logo
B60/100FDD 2024

Haute In — Litigation & Risk

Business Services - Other · FDD Items 3, 4 & 5

Back to overview

Lower Risk

No litigation cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
60 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Texas
State whose law governs disputes — relevant if you're not based there

What drove the 60/100 rating

Risk Score Breakdown

  1. 01MINOROnly 1 franchised unit with unknown growth trajectory suggests nascent or stalled expansion
  2. 02MINORNo Item 19 financial performance representations limits ability to verify stated average revenue figures
  3. 03MINORHigh initial investment ($66,550-$113,000) relative to single-unit system creates concentration risk
  4. 04MINOR8% royalty on $350K average revenue equals $28K annual fees, consuming 24% of net income
  5. 05MINORLack of multi-unit validation data makes revenue projections unverifiable and potentially misleading

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.